we have replaced andrew ross sorkin with larry summers. you be the judge.ecretary, currently a professor at harvard, someone that played him in a move i-ie is now a movie s. i think it gives you street cred. >> my wife says i was better looking than the guy who played me on the show. >> you know, winklevye as well. >> a lot to be said about the winkle vyes. >> have you been follow their career? >> it's not been a preoccupation, let me put it that way. >> coming up, a hearing op. the fiscal cliff, the chairman and vice chairman will join us first on "squawk" to talk about the debt negotiations. at 8:30 eastern the weekly job numbers. and a disruptor, applico founder and ceo alex moazed will join us at the bottom of the hour. becky if you interview him it's moazed so if it's wrong stick with that so no one will know. we shed $35 million of market as well mopping the reasons cited by analysts a forecast by an influential research firm suggesting the iphone iphone is giving up to google's headlines. apple accounts for the entirely of the mass dnasdaq's fall of

look, larry summers is a professor and loves -- he was a debating champion in college.nts. so we sat in his tiny little office which looked like it had been renovated in the 1950s, hours for hours around his little table and there were two really well argued strong points of view. one, that it should be saved for all the reasons i tried to spell out and the other that this is a time to let a company go. and gm and ford would ultimately be the beneficiaries of it. >> there was an actual vote? >> larry was big on democracy up to a point so there were votes. it got to 4-4. i had not yet voted. i said some things on one side and some things on the other side and i was really torn and larry said, all right, steve, what do you want to do? i thought and i thought and i said to myself, you know, if chrysler can be saved at this moment in the economy, even though it does trouble me on some level, it's the right thing to do. i think we should save it. so, that made it 5-4. larry was quietly in favor of saving it, which was relatively obvious to all of us. but then we went down to

quick question about another proposal floated by people like bob rubin, larry summers, other with close ties with the house, peterson and the peterson institute, what do you think of that proposal which goes through $1.8 trillion in new revenue over a decade, raising the top rates to clinton era levels, taxes on cigarettes, alcohol, internet gambling, also obviously some pretty big dramatic cuts on the spending side. is that a start in. >> i thought it has a lot of merit. look, part of what happens in washington is the two sides spend too much time talking to each other and not listening to the other side. once in a while the other side actually has a good idea and the truth be told, in a package of this size, we're going to need to take the best ideas of both sides and we're ready now, the country is ready, i believe the people of this country are going to say at the end of the day if we get agreement, gee, i don't like this, that, but it needed to be done and we can dos this. we've done much harder things in the past. we have to in some ways buck up those who are negotiating and tell

wall street they're responsible let's let them help us pay it back tim geithner is opposed that larry summers is opposed that even when obama said you know maybe we should consider this his advisor said no that would be a bad idea but it is a way to solve this problem without having any problem to the average american and to the point in a brilliant point it is by the way the american way to solve this problem we had abraham lincoln put a securities tax in place. the civil war. mckinley put in place for the spanish-american war and it stood in place until the one nine hundred thirty s. f.d.r. doubled it when he created the securities exchange commission so that he could pay joe kennedy salary basically and it stood we had a quarter percent it was called a step tech security transaction excise tax right up until nine hundred sixty four at that point the taxes created so much more money than the f.c.c. needed to function that lyndon johnson did away with it it's really time to bring that state tax back do you know if there's anybody in congress who's portions well i think you know you're going

mechanism of suppression interest rate mechanism of supporting government that is historic record larry summers who went from harvard to become treasury secretary the united states wrote the paper. what do we know as far as to what extent i know we don't know from central banks accounting how much are you saying what not that they have done or are doing but there is another i.m.f. document from ninety nine that you also your researchers found that does talk about it right well this is interesting because this is how got this started back in one thousand nine hundred nine when this report was written and then discovered we said the gold loans were far bigger than the establishment said they were we said in my frank my old friend and colleague said they could be as high as eight thousand times the establishment left as they said it was all wrong this report alone in one thousand nine hundred said that fifteen percent of the supposedly thirty two thousand tons was leased out or gone it's already been sent and sold in the physical marketplace and that's just what they counted so we were far more ri

ahead of the curve and bring different people and i think we've had the discussion before that larry summers keeps coming back and advising advising and he was the one that created the beginning of the end with the repeal of glass steagall in america the apocalypse exactly and gordon brown forgot that he was the one that sold all of the u.k.'s gold three hundred seventy seven four hundred tons so exactly what is that everybody's forgotten about what gordon brown did and he made not the queen's use down the wall so he was going around like did we have more gold at some point what happened to all this gold that's were out of time ok to say goodbye great to have you on again soon the book is right here this is it this is i got to recommend this book wholeheartedly i'm going to read it myself it's called plan of ponzi mitch fire stein is the author thanks so much for being on the kaiser report thanks for having me i know it's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest misfires stein if you like to send me an email please do

the advisers that he bridal and called the economic advisers to timothy geithner, larry summers and peter norris said. of the foreign policy team, robert gates up to his eyeballs most of the bad things the country has done for decades. >> but he promised he would pull troops out of iraq so he falls through on his promise. >> so they do not take it seriously enough. we think it has been a big mistake. one thing he said is that cut back on the bush secrecy and has not followed through. with the espionage act was passed three people were indicted we were critical of many things but with the treatment of bradley manning it was very problematic but in some ways with bush and cheney for the war crimes committed so if you commit war crimes you walk free? if you expose then you are sentenced to jail? his policy is problematic. and with the case like yemen and then if it backfires the times square bombers. >> we have one minute left. >> not only as factual but what form policy should we have? what would you do? >> impassioned and a love of mankind and a purpose a century of the common man because

several years ago larry summers wasn't of harvard. men might have have -- might want to go into math more than women. there was a firestorm and a harvard professor had to storm out of the room and almost throw up. >> basically it is what they said here. it is fine, but why is it a double standard? if men said women were not good at negotiating, and -- >> they are. we know what they are better at. we refuse to talk about -- >> no, you don't. >> yes, you do. >> they are good at complaining. >> they are great at so many things. i will admit that across the board. >> then you are in the minority. >> i want to point out bill said 17 things breaking the old record, 14 things from last night of the i agree with tom in the sense that women are good at compromise, but i don't want compromise. men and women are different, but you can never stress the male differences, only the female differences. >> women and women are different fnlt to say women in general are better at compromises that is crap. >> this show before it was called "red eye" was

for ideas to solve the problems and the deficit at the same time, bob rob an and larry summers suggestede away raise capital gains taxes. lets stop giving capital preferences over earned income. it's only fair and right. it won't solve the problem but will go a long way. back to john boehner. he doesn't say anything about this, because he refuses to raise rates. it can only be because he refuses to see the real problem. joining me now congressman thank you for joining us as always. >> thank you. am i right about the boehner proposal and what the underlying problems are. >> you are. also it's also true with the boehner proposal is it's not specific. he makes the general claim that will put $800 billion of revenuen oh the table but doesn't say from where. he wants to do tax code changes. that could mean it comes out of the middle class very easily. secondly, he ups the ante on cuts wants to cut mid care. boehner's in a box. he cannot sell to his caucus the idea of raising taxes when those guys ran against raising tasks and they in fact favored lowering them. what you're seeing, he knew he

>> larry summers, mark zuckerberg, at the white house. it's very interesting all these big guys want you to run their staff. how you handle them? -- how do you handle them? >> the common thread in a lot of the relationships with strong man is a kind of openness. by having that openness, you develop a real, trusting relationship. this is both with women and men, but i think one of the unique features of mark zuckerberg, he basically live the mission of the company, give people the power to connect and share to make the world more open, and he lives by that. he sits in the middle of our campus and his conference room is a glass box. >> does he come in every day? >> every day. he rarely travels. you cannot get him out with anyone else, but he is just sitting there living the mission. >> what is he doing? >> if you ask him what drives him, he would say building things. he really enjoys building of things. when he started facebook, he was looking to start a service to tap into something that is fundamental to every human being, this desire to

they were larry summers and these were wall street people that were brought into the policies or not depriving it of a foreign policy team robert gates has been up to his eyeballs in things the country has done for decades. >> this was promised to the campaign 2008 that he pulls us out of iraq so in some ways he is just following through on his promise. >> he has supported him strongly and if they do they were not taken seriously enough and then it would take us in a big mistake. the work on a number of fronts. he said it would be the transparency president of that he is going to cut back on all of push's secrecy. and in much ways he hasn't followed through. between 1917 and three people were indicted in to the act and they've invited six. they are very critical to a lot of things. but one is the treatment for example of bradley manning who has campaigned against assange heuvel released the documents that's very problematic but they refuse to go after bush and cheney and manning is being incarcerated for exposing the war crimes so if you comment coming you walk free and if you expose

was a perception there wasn't a good enough fight -- >> and putting a guy from goldman sachs, larry summersin charge of our economic policy. >> what's the plan? you have a history in terms of being able to battle these kinds of issues. do you have a plan to fight back in michigan? because they're going to go to other states and try to push the same legislation, which is all about stripping the democratic infrastructure, going right to the money, to the foundation, to make it so unions can't be effective in social networking to have an effect on elections. what's your plan? >> a number of things are going to happen. first of all, the unions and the democratic party there are going to use every legal means possible to obstruct this thing that they've done, which is against the will of the people. that's number one. number two, the democratic party of michigan has got to run candidates who are going to win. and in the last two days i've spent a lot of time talking to friends and colleagues in michigan, and we're going to put together our own search committee. we're going to recruit candidates

treasury secretary robert ruben agrees as do a number of his successors in that position, including larry summers and former treasury secretary paul o'neill. paul o'neill said it is hard to make a rational argument for the debt ceiling. is it the minority can use it to extract policy concessions from the majority as republicans did in 2011. in other words within the argument for the debt ceiling with s that we should enter the american economy into a becau majo v that i argument. it is long past time to get rid of the debt ceiling and the modified mcconnell/obama plan is as good a way as any to do it. it gives lawmakers a way it avoid a fiscal cliff or fiscal curve. it can end flirtations with fiscal suicide. that the last word. i'm ezra klein in for ed o'donnell. >>> the president has returned from his trip. chris matthews and "hardball" is next. >>> a no-brainer for boehner. let's play "hardball." ♪ good evening. i'm chris matthews in washington. let me the start tonight with this. somebody has got to break it to mr. boehner, your side lost. romney, remember him? he's the guy who ran on the ric

treasury secretary robert ruben agrees as do a number of his successors in that position, including larry summersy secretary paul o'neill. paul o o'neill said p is hard to make a rational argument for the debt ceiling. is it the minority can use it to extract policy concessiones from the majority as republicans did in 2011. in other words within the argument for the debt ceiling with s that we should enter the american economy into a never-ending game of russian roulette. because whichever party a majority of americans did not

in the 1950s and larry summers had made this point in the article, the paul samuelson.ow many people are familiar with paul samuelson? he wrote the standard textbook in the -- where he argued that if the growth rates continue as they were, the soviet union would overtake the united states by 1985. this is one of the nobel prize -- did a lot of other things that were brilliant, but that turned out to be incorrect; then, cover article after cover article in the harvard business review predicted that america wins the cold war, but japan and germany are going to be the dominant post cold war economies. those predictions seemed rather silly in retrospect, but it is not to diminish the contribution of the skeptics. i think what the greatness of the nation is that at times of crisis, at times where things may not be fully on track, it is the skeptics who speak up and say we may lose and force us to re-examine our policies that allow us to adapt and continue to lead, and i think the same thing -- same principle is true right now. we are -- our manufacturers, particularly, small

. >> all of these vital resources, do not pay taxes and people are worried -- >> larry summers and brad malone now that he is a free man, has joined me actually. they had a paper making a very strong persuasive case that even in purely fiscal terms spending more money now is positive. but it will do to the long-term economic growth will more than pay for itself in future tax revenue because the darling cost is solo and long term shadow of mass unemployment is quite large. conversely cutting back is self-defeating, it worsens the fiscal situation and what happens is people say got to inflict more pain because it really is like the medieval doctors, and treat people by bleeding people, so they got sicker and you lead them some more. >> i'm getting depressed with you guys. i have to turn to the audience now. people have questions. the microphone is in a couple places. please come up. >> if i could make an observation before i pose the question, i appreciate the opportunity to hear three brilliant people like yourself discuss the issues. i suspect if we had three equally distinguished econo

and that, larry summers who was a smart economist said just raise capital high enough, and i'll tellyou, if i believe that you could raise capital of banks high enough and they couldn't circumvent those regulations, then that's enough. but we've seen it time and again. if you give them an opportunity, give them capital requirements, they set up subsidiaries and so and so forth, so in that sense you want to have another dimension to the other dimension might be suppressed whatever extra risks you can. the only input that i had in this process was that the claim that you can't tell the difference between proprietary trading and market making, that's just not true. you can. every manager of every trading desk at every bank, and that every investment bank, does that for a living. every manager of every trading desk sits there and says, hey, you, down at the end, why are you holding that security for the past week or two? what do you think you'd asking them? you're holding it because you're speculating. get rid of it. that's their job. so they do it 100%, absolutely in the. nothing is 100

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he wouldn't election and as the former treasury secretary larry summers told me just this week, he wonlection based on this, that there should be higher taxes on the wealthy, so he's really dug in his heels, and he has, as he would say, the public support behind him. he's taken this message on the campaign trail. he's continuing to speak all around america right now about this very issue, and so unless the republicans are willing to allow tax rates to go up on the wealthy, it could be very difficult to get a deal done. >> it is certainly a campaign-style push going out there with his pen in hand ready to go telling people he's ready to sign it. let's take it down to the household level. i mean in, a sense, what do these tax increases mean for families? there's been some confusion about which parts of incomes will be taxed at a higher level and certainly not all of it, right? so just clear that up. >> you're correct. so, for example, randi, you made $69 a year, well, $59 of that would actually taxed at 15%, so normal, but it's that extra $10,000, that extra 10,000 that would be taxed at

. >> he won the election, and as larry summers told me just this week, he won the election based on thiss really dug in his heels and he has, as he would say, the public support behind him. he's taken this message on the campaign trail. he's continuing to speak all around america right now about this very issue. and so unless the republicans are willing to allow tax rates to go up on the wealthy, it could be very difficult to get a deal done. >> it is certainly a campaign style push going out there with his pen in hand ready to go, telling people he's ready to sign it. what do these tax increases mean for families? there's been some confusion about which parts will be taxed at a higher level and certainly not all of it, right? can you clear that up? >> for example, suppose you made $69,000 a year. well, $59,000 would actually be taxed at 15%. so normal. but it's that extra 10,000 that would be taxed at 28%. so part of your income would be taxed at a higher rate. but let's not forget, even though it may just be part of your income, that's income that you don't have then to spend on other

people like larry summers the former treasury secretary and economic council for the president.is the former assistant secretary for tax under bill clinton. roger altman, the list goes on. bill daily, the chief of staff to president obama. really great group. and they have enormous expertise. they also represent you know, really the folks who balanced the budget last time and who gave us the great economy of the '90s. these are people we should listen to. >> bill: and john pedesto former chief of staff. so question... can the republicans -- the republicans assert we can get all of the revenue we need by simply closing loopholes and getting rid of some deductions. they won't tell us exactly which ones they're talking about right? >> right. >> bill: we can get there. we don't have to raise tax rates. is that -- any truth to that? >> look, there is money to be had in reforming the code and getting rid of some of the deductions and credits and reforming them. no question about it. but if you just do that, and actually if you do that and lower the rates as the republicans proposed, w

. >> when you look at it and larry summers was on this morning, whom i have great respect for, he hadut the deficit by 1%, what is the impact on the gdp. they didn't get into that this morning but if his numbers he's using 0.9 to 1.4, if you lose 2% to 3% of gdp you'll go to negative growth which will impact -- >> at the very least the wheels will be on the runway. >> absolutely. >> let's switch gears, mario draghi today, listen, i was so wrong and i don't know how long it will last but i give him credit, at least for this period of time, how long it lasts because there is no growth and recession in europe i can't answer but what were your observations on that press conference? >> last night when i wrote about it, mario draghi can put his feet up and have a stella and enjoy. he bought himself time. july 6th will be mario draghi's day of celebration because he stemmed the financial crisis in europe and bought time. berlusconi comes onto the scene this morning with the politics and italian debt markets paid a price for it, it's coming back as we're talking, rallied back quite a bit in t

from both sides, but we put together a group of people who bore quite experienced, bob rubin, larry summers, well-known names, and we tried to work through hell to see if you could raise enough revenue to actually hit the simpson-bowles target. we limited unjustified tax loopholes, but we primarily did it by converting the current system of deductions which favor high income taxpayers which equalizes the benefits of middle-income and high-income taxpayers get. we restored the top rate to 39.6%. there is an lot of debate about whether you can lower the rate. it is incumbent upon other people to come forward to show how they can get the income necessary to deal with our fiscal problem and be specific about how they would take the loopholes and deductions out of the system and how much that would hit the middle class. overall, the plan i think tries to protect people in the middle and at the bottom, tries to deal with the problem of income inequality, and we think it is an important contribution to tax reform going for it. -- going forward. i anticipate a full-blown tax proposal will take plac

from both sides, but we put together a group of people who bore quite experienced, bob rubin, larry summers, well-known names, and we try to work through hell would you raise enough revenue to actually hit the simpson- polls target. -- simpson-bowles targer. we limit it unjustified tax loopholes, but we primarily did it by converting the current system of deductions which favor high income tax payers which equalizes the benefits of middle income and high-income tax payers get. we restored the top rate to 39 per 6%. there is an lot of debate about whether you can lower the rate. it is incumbent upon other people to come forward to show how they can get the income necessary to deal with our fiscal problem and be specific about how they would take the loopholes and deductions out of the system and how much that would hit the middle class. overall, the plan i think tries to protect people in the middle and at the bottom, try to deal with the problem of income inequality, and we think it is an important contribution to tax reform going for it. i anticipate a full-blown tax proposal will take pla

. >> larry summers -- >> i'm not done. >> all right. >> then. >> why -- >> if the boomers retire, ofrse taxes are going to rise as a share of gdp. we're doubling the number of seniors on social security and medicare. this is what the democrats now want to do, as a first step. they feel it was the inequality of the justice argument, blah, blah, blah, and if that's a piece of the beginning of the adjustment to the boomer's retirement, fine. >> don't you really wish we were talking more about entitlement reform and spending than just taxes? >> i think we need to talk about that, joe. >> they want to talk about -- >> you're the only one on your side who wants to do both, then. >> i'm a unique individual. >> the right answer would be to link -- i think what's so interesting about what bernanke did yesterday, people like me have been writing for the last few years, what we need is a fiscal deal that says stimulus, infrastructure, all this stuff in the near-term, when we've got 23 million people who are looking for full-time work and can't find it. and then when unemployment is below some t

larry, we passed that bill august of 2012. >> in the summer. >> took that same bill, put it in amendment form, went to the rules committee last night, askedal the rules committee to make an order to offer on the floor tonight on a plan-of-vote on plan b, it was not made in order, even though every republican voted for it and 19 democrats voted for a and we know what we're sending over there is not going to be sent back in the same form. why not send what we're for? >> could have forced a vote in the senate. possibly. >> just as likely as what's we're sending there now harry reid says he's not for. that's the stra teae strategic don't get. >> from john harwood, spending cuts, $10 billion over ten years. kweisi sequester, i'm not sure what it is. came at the last minute to get votes from your conservative colleagues. does it work? >> well, remember, it's not a -- we just passed that legislation just a couple minutes ago on the house floor. it's not attached to this bill. that's going to go over there. that piece of peep will likely wind up in the trash can at harry reid's office. what i fi

larry hall was responsible. not only did hall live 25 minutes from indiana wesleyan, he had been identified chasing two co-eds there just a week after trisha went missing. so in the summer, a month after convicting hall for jesse roach's murder, beaumont was leading a search for trisha. it was in those same indiana back woods where hall had told indiana authorities he dreamt he killed and buried trisha. >> i wanted to do everything we could to find her body. >> but after two days in sweltering heat and humidity, trisha's body didn't turn up. >> we couldn't find anything. it doesn't mean it wasn't there. >> then beaumont decided to try something completely different. >> i came up with the idea of putting somebody in the prison cell with him to see if we could get him to tell us what he did with trisha reitler. >> they didn't think you were crazy? >> most people thought i was crazy, yeah. but i was able to convince them we should do it, anyway. >> and to jimmy keane, the drug dealer beaumont had just convicted and sent to a prison. >> why did this stick out in your mind? >> because i knew he was a con man, he was smart. if anybody could pull it off, he would be able to pu